Aramco, through its subsidiary Aramco Overseas Company, has acquired a 10% stake in Rongsheng Petrochemical (Rongsheng) for 24.6bn yuan ($3.4bn).
The deal, which was announced in March 2023, forms part of Aramco’s efforts to expand its downstream presence in China.
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The transaction includes the supply of 480,000 barrels per day (bopd) of crude from Saudi Arabia to the Rongsheng affiliate Zhejiang Petroleum and Chemical (ZPC)-owned integrated refining and chemicals complex in China.
Aramco downstream president Mohammed Al Qahtani said: “Our strategic partnership with Rongsheng advances Aramco’s liquids to chemicals strategy while growing our presence in China and showcases our importance as a reliable supplier of crude oil. This key acquisition is an important part of Aramco’s long-term growth strategy, expanding our presence in a vital market.”
Rongsheng owns a 51% stake in ZPC. The complex has a processing capacity of 800,000bopd and production capacity of 4.2 million metric tonnes (mmt) of ethylene per year.
Rongsheng chairman Li Shuirong said: “The completion of this transaction marks the entry of Rongsheng and Aramco into a new era together, and also signifies an important step forward in Rongsheng’s internationalisation strategy.”
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By GlobalDataIn March 2023, Aramco and its Chinese joint venture (JV) partners NORINCO Group and Panjin Xincheng Industrial Group agreed to build an oil refinery and petrochemical plant in north-east China.
Planned for the city of Panjin in Liaoning province, the facility will comprise a 300,000bopd oil refinery and a petrochemical plant with an annual production capacity of 1.65mmt of ethylene and two million metric tonnes of paraxylene.
